SIMA Chairman Demands Evaluation Of New TN Energy Tariff
The apex body of spinners in South India, the Southern India Mills Association (SIMA) has urged the Tamil Nadu government to evaluate its policies related to energy supplied to the textile industry.
“Tamil Nadu is most attractive destination for new investments mainly due to its energy policies relating to wind power, open access power, third party power, etc.,” SIMA Chairman SK Sundararaman said.
“This has enabled energy intensive sectors like textiles to remain competitive when compared to any other states in the country,” he added.
“Unless suitable policies are announced or the power tariff revision rolled back to earlier levels, most of the textile mills in Tamil Nadu will close in a few years,” he warned.
The SIMA Chairman pointed out that energy costs account for more than 45 percent of production costs the textile industry.
“So, it is the most important factor for any textile unit to maintain financial viability and make further investments in modernisation, expansion and green field projects,” he observed.
